> ## Documentation Index
> Fetch the complete documentation index at: https://www.practiceownersguide.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Practice loan options

> SBA 7(a) vs. bank practice lending vs. equipment financing: rates, speed, and what underwriters actually look for.

Healthcare is a favored lending category: default rates on practice loans are
low, so money is available even for startups. The question is which flavor.

## The three main routes

| Route                                                         | Typical terms                                                          | Best for                                                                 | Watch for                                              |
| ------------------------------------------------------------- | ---------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------------ |
| Bank practice-lending programs (specialty healthcare lenders) | 100% financing common, 7-15 yr terms, competitive fixed rates, fast    | Startups and acquisitions in dental, vet, medical                        | Often requires moving your deposits to that bank       |
| SBA 7(a)                                                      | Up to \$5M, 10-25 yr terms, capped variable rates, slower (30-90 days) | Deals banks won't do conventionally, thin borrowers, real estate via 504 | Guaranty fee, personal guarantee, more paperwork       |
| Equipment financing / leases                                  | 3-7 yrs, secured by the equipment                                      | Adding equipment without touching working capital                        | Effective rates can hide in lease factors; compare APR |

Most startups end up with a specialty practice lender or SBA for the main
project, plus equipment financing layered as needed. A working-capital line of
credit alongside the term loan is cheap insurance for the collections lag
([why it exists](/concepts/claim-lifecycle)).

## What underwriting wants

Production history (your last 2-3 years of W-2s or production reports),
personal credit and modest liquidity, a projection built on realistic ramp,
and a total ask that includes **working capital**, size it with the
[startup cost calculator](/reference/startup-cost-calculator). For
acquisitions, the target's collections history mostly carries the deal
([Buy a practice](/guides/buy-a-practice)).

Expect a personal guarantee everywhere, startup or acquisition. Expect
lenders to require life/disability insurance assignments. And expect the
[MSO/PC structure](/guides/own-a-practice-without-a-license) to need
explaining: lenders lend into it routinely, but the MSA and both entities'
financials go in the file.

## Related

* [Get a practice loan](/guides/get-a-practice-loan)
* [Startup cost calculator](/reference/startup-cost-calculator)
* [Startup cost worksheet](/reference/startup-costs)
* [Buy a practice](/guides/buy-a-practice)